Ford turns to China's Geely to rescue Spanish plant

Ford has struck a joint venture deal with Chinese car giant Geely to build electrified SUVs at its underused factory in Valencia, Spain – a partnership that could ultimately reshape what comes next for many Ford models. Under the tie-up, Geely will build a pair of electric SUVs at the plant and the two brands will jointly develop a new model, as Chinese marques scramble to secure European factory space ahead of looming 'Made in Europe' local-content rules.

The alliance between Ford and Geely revives a relationship dating back to 2010, when Ford sold Volvo to Geely and, in its own words, watched the Chinese firm ‘protect and revitalise the brand’.

Ford's European head Jim Baumbick told Reuters: “We have the ability to really load up the facility.”

Ford's Valencia plant can build almost 500,000 vehicles per annum but currently only assembles the Kuga – sold here as the Escape until 2023 – at roughly one-fifth of capacity.

GlobalData figures show the factory ran at just 26 per cent utilisation in 2025.

Geely, which owns Volvo, Lotus, Zeekr and others, is keen to establish a foothold in Europe as much as Ford is to keep its factory running.

However, the deal has proven politically awkward. As a US Senate committee moved to toughen a ban on Chinese automakers, US Representative John Moolenaar branded Ford's decision "incomprehensible".

Ford hit back in a statement, saying Europe's landscape “is changing fast and we are competing head-on with the Chinese and every other major global automaker”.

From 2028, two 'new-energy' Geely SUVs will be built in Spain, not China – neatly side-stepping import tariffs.

Chinese brands are racing to acquire European manufacturing capacity ahead of looming EU 'Made in Europe' EV content rules.

Perhaps of more interest for Australian buyers is the question around what a deepening Ford-Geely relationship means for the next Ranger.

Geely is already developing a dual-cab ute for a 2028 launch, and there have been rumours that Geely and Ford are already in talks about sharing development costs for this ute – which could become the next Ranger.

It's tipped to use a new 3.0-litre twin-turbo V6 producing 350kW before hybrid assistance. This would give Geely a genuine rival to the BYD Shark 6, GWM Cannon Alpha, Toyota HiLux and Ranger.

Both global giants are staying tight-lipped on the future ute project.

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